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Learn about Brokered CDs

If you’re willing to do some research, then you might find that a brokered CD offers the best CD rates on the market. Many people invest in brokered CDs in order to find strong CD interest rates that they might not have been able to find with a bank CD rate. Here’s a brief overview of brokered CDs.

How to Find and Buy Brokered CDs
When dealing with brokered CDs, a broker such as a financial consultant or adviser can shop around to find the best CD rates that are currently available. You can essentially bypass the banks and look at the entire market for your CDs.

The vast array of investment options attracts many investors to brokered CDs. This way, you can view CD competitiveness in the entire market. There is one major difference between standard CDs and brokered CDs. You actually have to purchase and sell brokered CDs, similar to fixed-income investments such as real estate (although brokered CDs are still a conservative investment.)

Only people who have a securities license can have access to brokered CDs. Typically, financial advisers, consultants, brokers, and brokerage firms can all survey the brokered CD market for you.

Advantages and Disadvantages of Brokered CDs
Also, brokered CDs generally pay off investors at intervals instead of only at maturity. Brokered CDs can also be traded in the secondary market for prevailing prices. These trades can have an overall positive or negative effect on your investment. Since you can sell brokered CDs on the market, brokered CDs offer a bit of freedom that bank CDs don’t.

There are risks associated with brokered CDs, as they are susceptible to market fluctuations. But, if you invest in strong brokered CD, you might just see a strong return that pays you off incrementally, instead of only at maturity.

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E&O Insurance Rates, Claims, and Processes

When you’re comparing E&O insurance rates, it’s definitely important to take a look at annual premium costs and deductibles. Many people overlook how claims are made when they are shopping for insurance rates.

Claims Made vs. Claims Made and Reported
E&O insurance covers and errors or omissions made by professionals when said professionals fail to effectively perform a service for a client. There are generally two types of E&O policies. These are “claims made” and “claims made and reported” policies.

These types of claims determine how and if a certain incident will be covered. Every policy will have a certain policy period. If you own a ‘claims made’ policy, then a claim must be made while you are covered by the policy. If you own a ‘claims made and reported’ policy, then an official report must be sent to the insurance company during your policy period.

Know Your Retroactive Date
Any claims made before the policy went into action will not be covered by the insurer. So, make sure to look at the retroactive date on your policies. This is why it is beneficial to obtain a retroactive date that goes far back.

You need to acquire a policy that will cover defense expenses and punitive damages. Some policies explicitly exclude coverage for these expenses. So, carefully analyze your policy to make sure you are covered for these issues.

Go With a Company with E&O Experience
It’s a good idea to investigate specialty insurance companies that have experience in E&O. This is a very specialized field, so you should only entrust your company to top-notch professionals. Ask around and check your insurer’s rating before you purchase E&O insurance.

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Banks Market Savings Accounts With Bonuses

Bonuses added to savings accounts are often a great way for banks to attract customers. However, you should be very wary of savings account bonuses. Often, banks use savings account or checking account bonuses simply to trap customers into accounts with low interest rates.

Look at the Bare Numbers
First and foremost, you should analyze the interest rate of whatever account you intend to open. Compare this interest rate with prevailing interest rates at other banks. Of course, savings accounts are a very conservative form of investment, so it’s not likely that you’ll receive sizable interest. Still, your interest rate should be competitive with the marketplace.

Read the fine print and make sure you are aware of any restrictions or special rules that apply to your account. While an initial cash bonus might seem great, you don’t want to be trapped into an account that is full of various fees.

Be Fully Informed
In fact, you should ask the banker a lot of questions before you open a new account. You need to be fully aware of all the fees, or lack thereof. You should also be fully educated regarding overdraft activity and overdraft fines.

Usually large, multinational banks are the ones that offer bonuses. Many banks will offer referral programs, wherein if you refer a friend and that friend opens an account, you have money credited to your account. This is even more reason why you should carefully evaluate the specifications of these bank accounts.

Bonuses should be an added incentive to opening the account. However, you should want to open the account independent of the bonus. That way, the bonus is just like a cherry on top.